Our purpose and values shared across all EY member firms empower our high-quality services to resolve increasingly complex client issues and contribute to wider society

Today, we are confronted by a multitude of global risks: climate change; increasing and intensifying abnormal climatic conditions; deepening geopolitical tensions in Ukraine, the Middle East and other regions; soaring energy and food prices; and economic issues such as disruptions to supply chains. As discussed in the World Economic Forum 2023, we are on the brink of a polycrisis - an intertwined cluster of risks which compounds their individual effects.

Each risk is related to the others in some way, and a separate, case-by-case approach to resolve these individual risks could potentially have the side effect of intensifying other risks. In these conditions, individual organizations - including companies, governments, and international or educational institutions - should not adopt an approach to resolve their challenges alone; they must collaborate with stakeholders in various sectors and industries to pursue a sustainable society that is a peaceful and comfortable environment.

More recently, a company’s approaches to environmental and social issues through the lens of sustainability has also become a hot topic for discussion. As a society, we have also reached a significant turning point in relation to governance, one of the three pillars of the Environmental, Social and Governance (ESG) framework.

Many Japanese companies operating globally have typically approached the governance of their domestic and overseas subsidiaries separately. This is particularly true for overseas subsidiaries acquired in M&A; Japanese companies have intervened little in the subsidiaries’ existing internal systems or corporate culture, and limited imposing governance from their head offices. However, today, the perception of governance is moving towards a situation where, ideally, a company shares a corporate purpose across its entire group, including overseas subsidiaries. In turn, this shared foundation allows it to address challenges in each of the countries and regions where they occur. EY has supported many clients in redefining their strategy to align integrated global governance, as well as implementing that strategy throughout their global operations.

Strengthening governance is important in a context of transparency with stakeholders about sharing a strategy established by a head office and ensuring that strategy is applied to the operations of its employees at a global scale. A governance framework for an entire group creates opportunities for employees of overseas subsidiaries to be appointed as a board member of the Japanese parent company; this also means that the parent company can benefit from an opportunity to welcome highly-talented human resources from other countries and regions.

Building a better working world is the EY purpose shared across all EY member firms, and is the foundation for providing high-quality services to our clients. EY has upheld this purpose for more than ten years, taking an industry-leading position to implement this initiative at a global level. We have also established three pillars that define EY’s values which are shared among all EY people. We emphasize these values in how we conduct our business. In July 2024, EY appointed Janet Truncale as Global Chair and CEO and redefined its organizational framework. However, the EY purpose and our values are unchanged and rooted in our organization even after this change.

Building a better working world is our purpose and we will continue to pursue it, no matter how much times change. Our shared values of EY member firms are also essential and support our integrity as trusted professionals. Acting based on our values provides a sense of security for our clients to place trust in EY as we work with them to solve difficult problems or address confidential issues.

The three pillars for our values are reflected in the actions of every person at EY and in our collaboration with clients and other stakeholders. “People who build relationships based on doing the right thing,” the first pillar of our values, represents our stance to be straightforward in delivering our insight into matters we determine unfair or inequitable, or that could potentially lead to fraud. Given that our business is built on audits that are responsible for providing assurance for information disclosed by companies, our priority focus is to achieve and offer high-quality services. Consistently acting to do the right thing and providing high-quality services are prerequisites for gaining the trust of our clients, as well as wider society. The first pillar of our values is embraced not only in Assurance, our service line for audit services, but also across all EY member firms and other service lines.

“People who demonstrate integrity, respect, teaming and inclusiveness,” the second pillar of our values, is the foundation for approaching the various challenges that confront our clients. Resolving difficult issues requires the efforts of a team which can achieve more than a sole individual, the efforts of a division which is greater than a team, and the efforts of the entire organization of EY Japan far beyond the capability of a single division. But we can and must still do more, by leveraging the extensive skills, knowledge and capabilities of our global organization.

In all our efforts across our organization, we must demonstrate respect for each other while also freely expressing our opinions. EY is committed to fostering a corporate culture that facilitates healthy conflict in which our people can voice their opinions, even when that opinion may contradict the opinion of other parties involved in the discussion. In addition, EY is confident that nurturing an inclusive mindset, where leaders respect the voices of diverse individuals from various backgrounds, with different career experience and skills, and then incorporating these voices into decision-making, aids us in resolving our clients’ issues.

For more than 40 years, the EY Entrepreneur of the Year program has celebrated and continues to shine a light on the entrepreneurs who, through their services and businesses, are tackling the issues that confront society. This global annual program is attended by business leaders who participate in the Japan program, as well as their entrepreneur peers from around the world. Participants share their purpose and ideas with each other and form connections that facilitate the transformation of society which, in turn, are the catalyst for even more new ideas. EY also hosts the EY Accelerator Program to support women entrepreneurs and the growth of women-led businesses, as well as the Women Athletes Business Network (WABN) to assist women athletes to transition to entrepreneurship or other business ventures after their retirement from competitive sports.

Our All in strategy brings together EY people, clients and society to achieve the best outcome

“People with energy, enthusiasm and the courage to lead,” the third pillar for our values, is also integral to how we do business. Providing high-value-added services to our clients is more than a simple series of actions; it requires the passion and motivation of our people in their work. This is why, at EY Japan, we value the importance for our people of time away from work to rest and recharge, as well as initiatives to boost personal wellbeing.

Working together with passion across our organization not only fulfills the EY purpose but also empowers each of us to achieve our own individual purpose, as well as support our clients in achieving their purpose. Our awareness that each individual’s ideas and skillset are successfully applied to benefit our clients and wider society further strengthens our passion, generating a virtuous circle.

“The courage to lead” holds significant meaning in this third pillar of our values. This is because it requires considerable courage to communicate your thoughts without fearing conflict when sensing something wrong with the majority opinion or when realizing something that others have not yet recognized. In Japanese society, as there is a tendency to yield to peer pressure, having the courage to express your thoughts fearlessly is important in the context of “doing the right thing,” as highlighted in the first pillar of our values.

EY launched All in, a new global strategy, alongside a new organizational framework in July 2024. With this strategy, EY is committed to building trust in capital markets and empowering clients and society to address pressing issues by further enhancing the quality of our audit services, strategically investing in areas including sustainability, managed services and transformation, as well as building alliances and collaborating with other stakeholders. Here at EY Japan, we are engaged in ongoing strategic activity that aligns with this approach.

While All in may be a phrase more familiar to someone from an English-speaking country, it comes from a universal concept in team sports that everyone can understand. During critical moments that could potentially determine the outcome of the game, players often pause play to gather and place their hands in the center of their huddle to boost morale. Regardless of the stage of the game, this action demonstrates the players’ commitment to each do their best and achieve more collectively as a team. EY’s intention for All in is very similar: it underlines the importance of engaging with clients and society as a whole, rather than being closed as an organization, in our approach to collaboration and performing at our best in our work.

Summary

We are on the brink of a polycrisis, where a multitude of risks including climate change, geopolitical conflicts, soaring energy and food prices, and disruptions to supply chains can compound effects. In this context, organizations should not attempt to resolve their challenges alone. Collaboration and cooperation with stakeholders in various sectors and industries are essential. EY member firms, united in our shared pPurpose and values, are committed to building a better working world through our client services and initiatives which address issues across a wide range of areas.